Sears Holdings’ CEO Eddie Lampert strongly defended his company in his annual letter to shareholders, saying not only does he believe Sears is headed in the right direction, but that “the entire retail industry is headed to where we already are.”

The letter was released on Thursday, Feb. 27, the same day that the retailer posted its fourth quarter earnings report. Sears lost $1.36 billion last year as sales continued to fall and it closed stores as part of its plan to transform itself into a “member-centric” retailer.